David Einhorn says investors should be 'bearish on stocks and bullish on inflation'

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Greenlight Capital’s David Einhorn says investors should be “bearish on stocks and bullish on inflation.”

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The star hedge fund manager believes that the Federal Reserve could have more work to do to combat stubborn price pressures, lifting interest rates even higher than consensus expectations. The central bank has taken interest rates to a target range of 4.5%-4.75%, the highest since October 2007. Treasury yields have surged over the past year on the back of a series rate hikes. The benchmark 10-year Treasury yield on Wednesday topped 4% for the first time since November. Shorter-term rates surged even higher, with six-month and one-year yields topping 5% for the first time since 2007.

The hedge fund manager said in a recent investor letter that 2022 in many ways was his best year ever and the period was most comparable to 2001, the year after the last tech bubble popped. He also revealed that he is still short some "bubble" names.

 

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Great interview. Thanks Einhorn.

Bearish since 2008

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